FAO predicts “more balanced” food commodity markets in 2013, 2014

More balanced global food commodity markets are expected in 2013 and 2014, a UN food report said June 13, 2013.

In its Food Outlook report, the UN food agency indicated that food commodity markets, in particular for cereals, are set to be more balanced during the period.

The report takes note of latest indications pointing to a more comfortable world cereal supply-and-demand balance in the new 2013/14 marketing season.

“After a relatively tight situation and high prices in 2012/13, good production prospects and a likely replenishment in world stocks could pave the way for calmer markets and some easing of prices in the new season,” the Food and Agriculture Organisation (FAO) biannual report said.

With the world cereal harvest forecast to surge to a record 2,460 million tonnes in 2013, the Outlook said cereal prices could ease, adding “markets are becoming calmer”.

The FAO report forecasts that world food imports in 2013 will amount to $1.09 trillion, close to last year’s level, but 13% below the record of 2011.

It added that higher bills for fish and livestock products are anticipated to offset lower expenditures on most other commodities, especially sugar.

Prospects for abundant domestic crops in the least developed countries (LDCs), low-income food-deficit countries (LIFDCs) and countries in sub-Saharan Africa are expected to limit their import needs, according to the FAO.

By Ekow Quandzie